Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - WELLTOWER INC. | l37951e8vk.htm |
| EX-99.2 - EX-99.2 - WELLTOWER INC. | l37951exv99w2.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
| November 4, 2009 For more information contact: Scott Estes — (419) 247-2800 Mike Crabtree — (419) 247-2800 |
Health Care REIT, Inc.
Reports Third Quarter 2009 Results
Reports Third Quarter 2009 Results
Toledo,
Ohio, November 4, 2009........Health Care REIT, Inc. (NYSE:HCN) today announced operating results
for the company’s third quarter ended September 30, 2009.
“In
the face of the significant challenges of 2009, we successfully
disposed of non-core assets and will have completed over $700 million of development projects. We believe that these larger, consumer-driven
senior housing properties and state-of-the-art medical facilities are excellent additions to our
portfolio,” commented George L. Chapman, chairman, CEO and president of Health Care REIT, Inc. “In
addition, the continued strength of our property level rent coverage is a testament to the
resiliency of our senior housing and health care real estate.
“At the same time, we strengthened our balance sheet this year. We raised $1 billion in
attractively priced equity and debt and generated over $150 million in proceeds from asset sales.
We further enhanced our maturity schedule in the third quarter by prepaying higher cost debt and
reduced our leverage to near historic lows. Although deleveraging the balance sheet has impacted
year-over-year earnings comparisons, more importantly it has put us in an excellent capital
position while reducing future interest expense. With over $1 billion of current cash and line
availability, we are positioned to capitalize on investment opportunities consistent with our
strategy of partnering with strong operators and health systems that will redefine the senior
housing and health care experience.”
Recent Highlights.
| • | Completed 3Q09 and year-to-date gross new investments totaling $156.3 million and $507.7 million, respectively | ||
| • | Received $177.4 million in proceeds on property sales and loan payoffs year-to-date, generating $26.9 million of gains | ||
| • | Raised $434.6 million of net equity proceeds during 3Q09 through our September offering, equity shelf program and dividend reinvestment program | ||
| • | Raised $132.5 million of Freddie Mac mortgage loans during 3Q09 with an average rate of 5.9% | ||
| • | Prepaid $58.8 million of secured debt in September with a blended rate of 7.2% | ||
| • | Repurchased $161.4 million of outstanding 8.0% unsecured 2012 senior notes in September |
Key Performance Indicators.
| 3Q09 | 3Q08 | Change | 2009 | 2008 | Change | |||||||||||||||||||
Net income attributable to common
stockholders (NICS) per diluted share |
$ | 0.17 | $ | 0.55 | -69 | % | $ | 1.25 | $ | 2.61 | -52 | % | ||||||||||||
Normalized FFO per diluted share |
$ | 0.77 | $ | 0.86 | -10 | % | $ | 2.38 | $ | 2.51 | -5 | % | ||||||||||||
Normalized FAD per diluted share |
$ | 0.72 | $ | 0.82 | -12 | % | $ | 2.24 | $ | 2.39 | -6 | % | ||||||||||||
Dividends per common share |
$ | 0.68 | $ | 0.68 | 0 | % | $ | 2.04 | $ | 2.02 | 1 | % | ||||||||||||
Normalized FFO Payout Ratio |
88 | % | 79 | % | 86 | % | 80 | % | ||||||||||||||||
Normalized FAD Payout Ratio |
94 | % | 83 | % | 91 | % | 85 | % | ||||||||||||||||
Page 1 of 9
| 3Q09 Earnings Release | November 4, 2009 |
3Q09 Earnings. The following table summarizes certain items impacting NICS, FFO and FAD:
| NICS | FFO | FAD | ||||||||||||||||||||||||||||||||||
| 3Q09 | 3Q08 | Change | 3Q09 | 3Q08 | Change | 3Q09 | 3Q08 | Change | ||||||||||||||||||||||||||||
Per diluted share |
$ | 0.17 | $ | 0.55 | -69 | % | $ | 0.53 | $ | 0.85 | -38 | % | $ | 0.55 | $ | 0.86 | -36 | % | ||||||||||||||||||
Includes impact of: |
||||||||||||||||||||||||||||||||||||
Gain(loss) on sales of real property (1) |
($0.01 | ) | $ | 0.13 | ||||||||||||||||||||||||||||||||
Other items, net (2) |
($0.25 | ) | ($0.01 | ) | ($0.25 | ) | ($0.01 | ) | ($0.25 | ) | ($0.01 | ) | ||||||||||||||||||||||||
Prepaid/straight-line rent cash receipts (3) |
$ | 0.07 | $ | 0.05 | ||||||||||||||||||||||||||||||||
Per diluted share — normalized (a) |
$ | 0.77 | $ | 0.86 | -10 | % | $ | 0.72 | $ | 0.82 | -12 | % | ||||||||||||||||||||||||
| (a) | Amounts may not sum due to rounding | |
| (1) | $806,000 of losses and $12,619,000 of gains in 3Q09 and 3Q08, respectively. | |
| (2) | See FFO and FAD reconciliation exhibits for other items. | |
| (3) | $8,319,000 and $4,781,000 of receipts in 3Q09 and 3Q08, respectively. |
2009 Year-To-Date Earnings. The following table summarizes certain items impacting NICS,
FFO and FAD:
| NICS | FFO | FAD | ||||||||||||||||||||||||||||||||||
| 2009 | 2008 | Change | 2009 | 2008 | Change | 2009 | 2008 | Change | ||||||||||||||||||||||||||||
Per diluted share |
$ | 1.25 | $ | 2.61 | -52 | % | $ | 2.11 | $ | 2.50 | -16 | % | $ | 2.17 | $ | 2.55 | -15 | % | ||||||||||||||||||
Includes impact of: |
||||||||||||||||||||||||||||||||||||
Gain on sales of real property (1) |
$ | 0.24 | $ | 1.44 | ||||||||||||||||||||||||||||||||
Other items, net (2) |
($0.27 | ) | ($0.01 | ) | ($0.27 | ) | ($0.01 | ) | ($0.27 | ) | ($0.01 | ) | ||||||||||||||||||||||||
Prepaid/straight-line rent cash receipts (3) |
$ | 0.21 | $ | 0.17 | ||||||||||||||||||||||||||||||||
Per diluted share — normalized (a) |
$ | 2.38 | $ | 2.51 | -5 | % | $ | 2.24 | $ | 2.39 | -6 | % | ||||||||||||||||||||||||
| (a) | Amounts may not sum due to rounding | |
| (1) | $26,907,000 and $130,813,000 of gains in 2009 and 2008, respectively. | |
| (2) | See FFO and FAD reconciliation exhibits for other items. | |
| (3) | $23,463,000 and $15,679,000 of receipts in 2009 and 2008, respectively. |
Non-recurring Third Quarter 2009 Items. The following items impacted 2009 earnings:
| • | $20.9 million of loss on extinguishment of debt ($0.18 per diluted share) was recognized in connection with the company’s repurchase of $161.4 million of outstanding 8.0% unsecured senior notes due 2012. | ||
| • | $5.4 million of loss on extinguishment of debt ($0.05 per diluted share) was recognized in connection with the company’s prepayment of $58.8 million of secured debt with a blended interest rate of 7.2%. | ||
| • | $1.9 million of impairment charges ($0.02 per diluted share) were recognized in connection with the four remaining medical office buildings classified as held-for-sale to adjust for current sales price expectations. | ||
| • | $0.8 million of losses ($0.01 per diluted share) were recognized in connection with the sales of ten medical office buildings previously classified as held-for-sale. |
Dividends for Third Quarter 2009. As previously announced, the Board of Directors declared
a cash dividend for the quarter ended September 30, 2009 of $0.68 per share, as compared to $0.68
per share for the same period in 2008. The cash dividend will be paid on November 20, 2009 and
will be the company’s 154th consecutive quarterly dividend payment.
Outlook for 2009. The company is revising its 2009 guidance to reflect current
expectations for the remainder of the year.
| • | Investments: There are no acquisitions in our current assumptions. Funded new development expectations have been decreased to $550 million from $600 million and dispositions have been revised to $250 million from a range of $200 to $300 million. As a result, net investment guidance has been revised to $300 million from a range of $300 to $400 million. | ||
| • | Capital: During the third quarter of 2009, the company issued $434.6 million of new equity, raised $132.5 million of new secured debt, prepaid $58.8 million of outstanding secured debt and repurchased $161.4 million of outstanding unsecured senior notes. In addition to this activity, the company does not anticipate raising any additional secured debt in 2009. |
Page 2 of 9
| 3Q09 Earnings Release | November 4, 2009 |
| • | Earnings: The company is narrowing its normalized FFO and FAD guidance to reflect actual year-to-date results as well as revised investment and capital expectations described above. Normalized FFO has been revised to a range of $3.10 to $3.12 per diluted share from $3.07 to $3.14 per diluted share. Normalized FAD has been revised to a range of $2.92 to $2.94 per diluted share from $2.91 to $2.98 per diluted share. Net income attributable to common stockholders has been decreased to a range of $1.61 to $1.63 per diluted share from $1.75 to $1.82 per diluted share. The prior net income guidance included $5 million of debt extinguishment charges for the secured debt prepayments. The decrease in net income guidance is primarily due to the additional $20.9 million debt extinguishment charge recognized in the third quarter in connection with the company’s unsecured senior notes tender offer. |
The company’s guidance excludes any additional capital transactions, impairments, unanticipated
additions to the loan loss reserve or other additional one-time items, including any additional
cash payments other than normal monthly rental payments. Please see the exhibits for a
reconciliation of the outlook for net income available to common stockholders to normalized FFO and
FAD.
Conference Call Information. The company has scheduled a conference call on Thursday,
November 5, 2009 at 10:00 a.m. Eastern Time to discuss its third quarter 2009 results, industry
trends, portfolio performance and outlook for 2009. Telephone access will be available by dialing
888-346-2469 or 706-758-4923 (international). For those unable to listen to the call live, a taped
rebroadcast will be available beginning two hours after completion of the call through November 19,
2009. To access the rebroadcast, dial 800-642-1687 or 706-645-9291 (international). The conference
ID number is 34821337. To participate in the webcast, log on to www.hcreit.com or www.earnings.com
15 minutes before the call to download the necessary software. Replays will be available for 90
days through the same websites. This earnings release is posted on the company’s website under the
heading News & Events.
Supplemental Reporting Measures. The company believes that net income attributable to
common stockholders (NICS), as defined by U.S. generally accepted accounting principles (U.S.
GAAP), is the most appropriate earnings measurement. However, the company considers funds from
operations (FFO) and funds available for distribution (FAD) to be useful supplemental measures of
its operating performance. Historical cost accounting for real estate assets in accordance with
U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time
as evidenced by the provision for depreciation. However, since real estate values have historically
risen or fallen with market conditions, many industry investors and analysts have considered
presentations of operating results for real estate companies that use historical cost accounting to
be insufficient. In response, the National Association of Real Estate Investment Trusts (NAREIT)
created FFO as a supplemental measure of operating performance for REITs that excludes historical
cost depreciation from net income. FFO, as defined by NAREIT, means net income, computed in
accordance with U.S. GAAP, excluding gains (or losses) from sales of real estate, plus real estate
depreciation and amortization, and after adjustments for unconsolidated partnerships and joint
ventures. Normalized FFO represents FFO adjusted for unusual and non-recurring items. FAD
represents FFO excluding net straight-line rental adjustments, amortization related to above/below
market leases and amortization of non-cash interest expenses and less cash used to fund capital
expenditures, tenant improvements and lease commissions at medical office buildings. Normalized
FAD represents FAD excluding prepaid/straight-line rent cash receipts and adjusted for unusual and
non-recurring items.
The company’s supplemental reporting measures and similarly entitled financial measures are widely
used by investors and equity analysts in the valuation, comparison and investment recommendations
of companies. The company’s management uses these financial measures to facilitate internal and
external comparisons to historical
operating results and in making operating decisions. Additionally, they are utilized by the Board
of Directors to evaluate management. The supplemental reporting measures do not represent net
income or cash flow provided from operating activities as determined in accordance with U.S. GAAP
and should not be considered as
Page 3 of 9
| 3Q09 Earnings Release | November 4, 2009 |
alternative measures of profitability or liquidity. Finally, the
supplemental reporting measures, as defined by the company, may not be comparable to similarly
entitled items reported by other real estate investment trusts or other companies. Please see the
exhibits for reconciliations of the supplemental reporting measures.
About Health Care REIT. Health Care REIT, Inc., an S&P 500 company with headquarters in
Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of senior
housing and health care real estate. The company also provides an extensive array of property
management and development services. As of September 30, 2009, the company’s broadly diversified
portfolio consisted of 608 properties in 39 states. More information is available on the company’s
website at www.hcreit.com.
This document may contain “forward-looking” statements as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among
other things, the possible expansion of the company’s portfolio; the sale of properties; the
performance of its operators/tenants and properties; its occupancy rates; its ability to acquire,
develop and/or manage properties; its ability to enter into agreements with viable new tenants for
vacant space or for properties that the company takes back from financially troubled tenants, if
any; its ability to make distributions to stockholders; its policies and plans regarding
investments, financings and other matters; its tax status as a real estate investment trust; its
ability to appropriately balance the use of debt and equity; its ability to access capital markets
or other sources of funds; its critical accounting policies; and its ability to meet its earnings
guidance. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,”
“expect,” “anticipate,” “project,” “estimate” or similar expressions, it is making forward-looking
statements. Forward-looking statements are not guarantees of future performance and involve risks
and uncertainties. The company’s expected results may not be achieved, and actual results may
differ materially from expectations. This may be a result of various factors, including, but not
limited to: the status of the economy; the status of capital markets, including availability and
cost of capital; issues facing the health care industry, including compliance with, and changes to,
regulations and payment policies, responding to government investigations and punitive settlements
and operators’/tenants’ difficulty in cost-effectively obtaining and maintaining adequate liability
and other insurance; changes in financing terms; competition within the health care and senior
housing industries; negative developments in the operating results or financial condition of
operators/tenants, including, but not limited to, their ability to pay rent and repay loans; the
company’s ability to transition or sell facilities with profitable results; the failure to make new
investments as and when anticipated; acts of God affecting the company’s properties; the company’s
ability to re-lease space at similar rates as vacancies occur; the company’s ability to timely
reinvest sale proceeds at similar rates to assets sold; operator/tenant bankruptcies or
insolvencies; government regulations affecting Medicare and Medicaid reimbursement rates and
operational requirements; liability or contract claims by or against operators/tenants;
unanticipated difficulties and/or expenditures relating to future acquisitions; environmental laws
affecting the company’s properties; changes in rules or practices governing the company’s financial
reporting; and legal and operational matters, including real estate investment trust qualification
and key management personnel recruitment and retention. Finally, the company assumes no obligation
to update or revise any forward-looking statements or to update the reasons why actual results
could differ from those projected in any forward-looking statements.
Page 4 of 9
| 3Q09 Earnings Release | November 4, 2009 |
HEALTH CARE REIT, INC.
Financial Exhibits
Financial Exhibits
CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands)
| September 30, | ||||||||
| 2009 | 2008 | |||||||
Assets |
||||||||
Real estate investments: |
||||||||
Real property owned: |
||||||||
Land and land improvements |
$ | 523,107 | $ | 506,083 | ||||
Buildings and improvements |
4,933,561 | 4,649,491 | ||||||
Acquired lease intangibles |
121,059 | 136,603 | ||||||
Real property held for sale, net of accumulated depreciation |
37,118 | 41,336 | ||||||
Construction in progress |
638,507 | 497,673 | ||||||
| 6,253,352 | 5,831,186 | |||||||
Less accumulated depreciation and intangible amortization |
(664,415 | ) | (569,363 | ) | ||||
Net real property owned |
5,588,937 | 5,261,823 | ||||||
Real estate loans receivable: |
||||||||
Loans receivable |
494,877 | 501,871 | ||||||
Less allowance for losses on loans receivable |
(7,640 | ) | (7,406 | ) | ||||
Net real estate loans receivable |
487,237 | 494,465 | ||||||
Net real estate investments |
6,076,174 | 5,756,288 | ||||||
Other assets: |
||||||||
Equity investments |
3,020 | 1,862 | ||||||
Deferred loan expenses |
24,755 | 25,315 | ||||||
Cash and cash equivalents |
102,353 | 18,273 | ||||||
Restricted cash |
17,493 | 83,189 | ||||||
Receivables and other assets |
157,611 | 137,028 | ||||||
| 305,232 | 265,667 | |||||||
Total assets |
$ | 6,381,406 | $ | 6,021,955 | ||||
Liabilities and equity |
||||||||
Liabilities: |
||||||||
Borrowings under unsecured lines of credit arrangements |
$ | 143,000 | $ | 387,000 | ||||
Senior unsecured notes |
1,651,916 | 1,830,102 | ||||||
Secured debt |
625,571 | 452,054 | ||||||
Accrued expenses and other liabilities |
124,769 | 124,986 | ||||||
Total liabilities |
2,545,256 | 2,794,142 | ||||||
Equity: |
||||||||
Preferred stock |
288,683 | 301,901 | ||||||
Common stock |
122,870 | 103,110 | ||||||
Capital in excess of par value |
3,878,872 | 3,147,807 | ||||||
Treasury stock |
(7,619 | ) | (5,145 | ) | ||||
Cumulative net income |
1,510,449 | 1,327,009 | ||||||
Cumulative dividends |
(1,968,336 | ) | (1,647,699 | ) | ||||
Accumulated other comprehensive income |
(4,942 | ) | (11,905 | ) | ||||
Other equity |
5,551 | 3,777 | ||||||
Total Health Care REIT, Inc. stockholders’ equity |
3,825,528 | 3,218,855 | ||||||
Noncontrolling interests |
10,622 | 8,958 | ||||||
Total equity |
3,836,150 | 3,227,813 | ||||||
Total liabilities and equity |
$ | 6,381,406 | $ | 6,021,955 | ||||
Page 5 of 9
| 3Q09 Earnings Release | November 4, 2009 |
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenues: |
||||||||||||||||
Rental income |
$ | 133,481 | $ | 126,384 | $ | 393,901 | $ | 357,588 | ||||||||
Interest income |
10,528 | 10,910 | 30,639 | 29,177 | ||||||||||||
Other income |
1,089 | 2,055 | 3,810 | 5,655 | ||||||||||||
Gross revenues |
145,098 | 139,349 | 428,350 | 392,420 | ||||||||||||
Expenses: |
||||||||||||||||
Interest expense |
28,571 | 33,725 | 82,512 | 101,569 | ||||||||||||
Property operating expenses |
12,433 | 11,192 | 35,377 | 32,600 | ||||||||||||
Depreciation and amortization |
41,085 | 39,011 | 120,129 | 109,649 | ||||||||||||
General and administrative expenses |
10,363 | 10,789 | 38,784 | 33,693 | ||||||||||||
Realized loss on derivatives |
0 | 1,513 | 0 | 1,513 | ||||||||||||
Loss (gain) on extinguishment of debt |
26,374 | (768 | ) | 24,697 | (2,094 | ) | ||||||||||
Provision for loan losses |
0 | 0 | 140 | 0 | ||||||||||||
Total expenses |
118,826 | 95,462 | 301,639 | 276,930 | ||||||||||||
Income from continuing operations before income taxes |
26,272 | 43,887 | 126,711 | 115,490 | ||||||||||||
Income tax expense |
55 | 153 | (17 | ) | (1,170 | ) | ||||||||||
Income from continuing operations |
26,327 | 44,040 | 126,694 | 114,320 | ||||||||||||
Discontinued operations: |
||||||||||||||||
Gain (loss) on sales of properties |
(806 | ) | 12,619 | 26,907 | 130,813 | |||||||||||
Impairment of assets |
(1,873 | ) | 0 | (1,873 | ) | 0 | ||||||||||
Income from discontinued operations, net |
1,037 | 2,661 | 4,361 | 10,903 | ||||||||||||
| (1,642 | ) | 15,280 | 29,395 | 141,716 | ||||||||||||
Net income |
24,685 | 59,320 | 156,089 | 256,036 | ||||||||||||
Less: Preferred dividends |
5,520 | 5,730 | 16,560 | 17,660 | ||||||||||||
Net income attributable to noncontrolling interests |
35 | 1 | 40 | 128 | ||||||||||||
Net income attributable to common stockholders |
$ | 19,130 | $ | 53,589 | $ | 139,489 | $ | 238,248 | ||||||||
Average number of common shares outstanding: |
||||||||||||||||
Basic |
114,874 | 96,040 | 111,345 | 90,500 | ||||||||||||
Diluted |
115,289 | 96,849 | 111,749 | 91,121 | ||||||||||||
Net income attributable to common stockholders per share: |
||||||||||||||||
Basic |
$ | 0.17 | $ | 0.56 | $ | 1.25 | $ | 2.63 | ||||||||
Diluted |
0.17 | 0.55 | 1.25 | 2.61 | ||||||||||||
Common dividends per share |
$ | 0.68 | $ | 0.68 | $ | 2.04 | $ | 2.02 | ||||||||
Page 6 of 9
| 3Q09 Earnings Release | November 4, 2009 |
Funds From Operations Reconciliation
(Amounts in 000’s except per share data)
(Amounts in 000’s except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income attributable to common stockholders |
$ | 19,130 | $ | 53,589 | $ | 139,489 | $ | 238,248 | ||||||||
Depreciation and amortization (1) |
41,085 | 41,690 | 123,143 | 120,894 | ||||||||||||
Loss (gain) on sales of properties |
806 | (12,619 | ) | (26,907 | ) | (130,813 | ) | |||||||||
Noncontrolling interests |
(88 | ) | (87 | ) | (262 | ) | (261 | ) | ||||||||
Funds from operations |
60,933 | 82,573 | 235,463 | 228,068 | ||||||||||||
Impairment of assets |
1,873 | 0 | 1,873 | 0 | ||||||||||||
Realized loss on derivatives |
0 | 1,513 | 0 | 1,513 | ||||||||||||
Non-recurring G&A expenses |
0 | 0 | 3,909 | 0 | ||||||||||||
Loss (gain) on extinguishment of debt |
26,374 | (768 | ) | 24,697 | (2,094 | ) | ||||||||||
Provision for loan losses |
0 | 0 | 140 | 0 | ||||||||||||
Non-recurring income tax expense |
0 | 0 | 0 | 1,325 | ||||||||||||
Funds from operations — normalized |
$ | 89,180 | $ | 83,318 | $ | 266,082 | $ | 228,812 | ||||||||
Average common shares outstanding: |
||||||||||||||||
Basic |
114,874 | 96,040 | 111,345 | 90,500 | ||||||||||||
Diluted |
115,289 | 96,849 | 111,749 | 91,121 | ||||||||||||
Per share data: |
||||||||||||||||
Net income attributable to common stockholders |
||||||||||||||||
Basic |
$ | 0.17 | $ | 0.56 | $ | 1.25 | $ | 2.63 | ||||||||
Diluted |
0.17 | 0.55 | 1.25 | 2.61 | ||||||||||||
Funds from operations |
||||||||||||||||
Basic |
$ | 0.53 | $ | 0.86 | $ | 2.11 | $ | 2.52 | ||||||||
Diluted |
0.53 | 0.85 | 2.11 | 2.50 | ||||||||||||
Funds from operations — normalized |
||||||||||||||||
Basic |
$ | 0.78 | $ | 0.87 | $ | 2.39 | $ | 2.53 | ||||||||
Diluted |
0.77 | 0.86 | 2.38 | 2.51 | ||||||||||||
FFO Payout Ratio |
||||||||||||||||
Dividends per common share |
$ | 0.68 | $ | 0.68 | $ | 2.04 | $ | 2.02 | ||||||||
FFO per diluted share |
$ | 0.53 | $ | 0.85 | $ | 2.11 | $ | 2.50 | ||||||||
FFO payout ratio |
128 | % | 80 | % | 97 | % | 81 | % | ||||||||
FFO Payout Ratio — Normalized |
||||||||||||||||
Dividends per share |
$ | 0.68 | $ | 0.68 | $ | 2.04 | $ | 2.02 | ||||||||
FFO per diluted share — normalized |
$ | 0.77 | $ | 0.86 | $ | 2.38 | $ | 2.51 | ||||||||
FFO payout ratio — normalized |
88 | % | 79 | % | 86 | % | 80 | % | ||||||||
| Notes: | (1) Depreciation and amortization includes depreciation and amortization from discontinued operations. |
Page 7 of 9
| 3Q09 Earnings Release | November 4, 2009 |
Funds Available For Distribution Reconciliation
(Amounts in 000’s except per share data)
(Amounts in 000’s except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
Net income attributable to common stockholders |
$ | 19,130 | $ | 53,589 | $ | 139,489 | $ | 238,248 | ||||||||
Depreciation and amortization (1) |
41,085 | 41,690 | 123,143 | 120,894 | ||||||||||||
Loss (gain) on sales of properties |
806 | (12,619 | ) | (26,907 | ) | (130,813 | ) | |||||||||
Noncontrolling interests |
(17 | ) | (9 | ) | (49 | ) | (26 | ) | ||||||||
Gross straight-line rental income |
(4,571 | ) | (5,437 | ) | (14,499 | ) | (15,807 | ) | ||||||||
Prepaid/straight-line rent receipts |
8,319 | 4,781 | 23,463 | 15,679 | ||||||||||||
Amortization related to above/(below) market leases, net |
(620 | ) | (214 | ) | (1,344 | ) | (676 | ) | ||||||||
Non-cash interest expense |
2,895 | 2,774 | 8,511 | 8,332 | ||||||||||||
Cap-ex, tenant improvements, lease commissions |
(3,637 | ) | (1,555 | ) | (8,795 | ) | (3,482 | ) | ||||||||
Funds available for distribution |
63,390 | 83,000 | 243,012 | 232,349 | ||||||||||||
Impairment of assets |
1,873 | 0 | 1,873 | 0 | ||||||||||||
Realized loss on derivatives |
0 | 1,513 | 0 | 1,513 | ||||||||||||
Non-recurring G&A expenses |
0 | 0 | 3,909 | 0 | ||||||||||||
Loss (gain) on extinguishment of debt |
26,374 | (768 | ) | 24,697 | (2,094 | ) | ||||||||||
Provision for loan losses |
0 | 0 | 140 | 0 | ||||||||||||
Non-recurring income tax expense |
0 | 0 | 0 | 1,325 | ||||||||||||
Prepaid/straight-line rent receipts |
(8,319 | ) | (4,781 | ) | (23,463 | ) | (15,679 | ) | ||||||||
Funds available for distribution — normalized |
$ | 83,318 | $ | 78,964 | $ | 250,168 | $ | 217,414 | ||||||||
Average common shares outstanding: |
||||||||||||||||
Basic |
114,874 | 96,040 | 111,345 | 90,500 | ||||||||||||
Diluted |
115,289 | 96,849 | 111,749 | 91,121 | ||||||||||||
Per share data: |
||||||||||||||||
Net income attributable to common stockholders |
||||||||||||||||
Basic |
$ | 0.17 | $ | 0.56 | $ | 1.25 | $ | 2.63 | ||||||||
Diluted |
0.17 | 0.55 | 1.25 | 2.61 | ||||||||||||
Funds available for distribution |
||||||||||||||||
Basic |
$ | 0.55 | $ | 0.86 | $ | 2.18 | $ | 2.57 | ||||||||
Diluted |
0.55 | 0.86 | 2.17 | 2.55 | ||||||||||||
Funds available for distribution — normalized |
||||||||||||||||
Basic |
$ | 0.73 | $ | 0.82 | $ | 2.25 | $ | 2.40 | ||||||||
Diluted |
0.72 | 0.82 | 2.24 | 2.39 | ||||||||||||
FAD Payout Ratio |
||||||||||||||||
Dividends per common share |
$ | 0.68 | $ | 0.68 | $ | 2.04 | $ | 2.02 | ||||||||
FAD per diluted share |
$ | 0.55 | $ | 0.86 | $ | 2.17 | $ | 2.55 | ||||||||
FAD payout ratio |
124 | % | 79 | % | 94 | % | 79 | % | ||||||||
FAD Payout Ratio — Normalized |
||||||||||||||||
Dividends per common share |
$ | 0.68 | $ | 0.68 | $ | 2.04 | $ | 2.02 | ||||||||
FAD per diluted share — normalized |
$ | 0.72 | $ | 0.82 | $ | 2.24 | $ | 2.39 | ||||||||
FAD payout ratio — normalized |
94 | % | 83 | % | 91 | % | 85 | % | ||||||||
| Notes: | (1) Depreciation and amortization includes depreciation and amortization from discontinued operations. |
Page 8 of 9
| 3Q09 Earnings Release | November 4, 2009 |
Outlook Reconciliations
(Amounts in 000’s except per share data)
(Amounts in 000’s except per share data)
| Prior Outlook | Current Outlook | |||||||||||||||
| Year Ended | Year Ended | |||||||||||||||
| December 31, 2009 | December 31, 2009 | |||||||||||||||
| Low | High | Low | High | |||||||||||||
FFO Reconciliation: |
||||||||||||||||
Net income attributable to common stockholders |
$ | 199,842 | $ | 207,592 | $ | 185,038 | $ | 187,288 | ||||||||
Loss (gain) on sales of properties |
(27,713 | ) | (27,713 | ) | (26,907 | ) | (26,907 | ) | ||||||||
Depreciation and amortization (1) |
170,000 | 170,000 | 167,000 | 167,000 | ||||||||||||
Funds from operations |
342,129 | 349,879 | 325,131 | 327,381 | ||||||||||||
Loss (gain) on extinguishment of debt |
3,822 | 3,822 | 24,697 | 24,697 | ||||||||||||
Impairment of assets |
0 | 0 | 1,873 | 1,873 | ||||||||||||
Provision for loan losses |
140 | 140 | 140 | 140 | ||||||||||||
Non-recurring G&A expenses (2) |
3,909 | 3,909 | 3,909 | 3,909 | ||||||||||||
Funds from operations — normalized |
$ | 350,000 | $ | 357,750 | $ | 355,750 | $ | 358,000 | ||||||||
Per share data (diluted): |
||||||||||||||||
Net income attributable to common stockholders |
$ | 1.75 | $ | 1.82 | $ | 1.61 | $ | 1.63 | ||||||||
Funds from operations |
3.00 | 3.07 | 2.83 | 2.85 | ||||||||||||
Funds from operations — normalized |
3.07 | 3.14 | 3.10 | 3.12 | ||||||||||||
FAD Reconciliation: |
||||||||||||||||
Net income attributable to common stockholders |
$ | 199,842 | $ | 207,592 | $ | 185,038 | $ | 187,288 | ||||||||
Loss (gain) on sales of properties |
(27,713 | ) | (27,713 | ) | (26,907 | ) | (26,907 | ) | ||||||||
Depreciation and amortization (1) |
170,000 | 170,000 | 167,000 | 167,000 | ||||||||||||
Gross straight-line rental income |
(18,000 | ) | (18,000 | ) | (18,800 | ) | (18,800 | ) | ||||||||
Prepaid/straight-line rent receipts |
15,144 | 15,144 | 23,463 | 23,463 | ||||||||||||
Amortization related to above/(below)
market leases, net |
(1,300 | ) | (1,300 | ) | (1,750 | ) | (1,750 | ) | ||||||||
Non-cash interest expense |
11,550 | 11,550 | 11,550 | 11,550 | ||||||||||||
Cap-ex, tenant improvements, lease commissions |
(10,000 | ) | (10,000 | ) | (11,500 | ) | (11,500 | ) | ||||||||
Funds available for distribution |
339,523 | 347,273 | 328,094 | 330,344 | ||||||||||||
Loss (gain) on extinguishment of debt |
3,822 | 3,822 | 24,697 | 24,697 | ||||||||||||
Impairment of assets |
0 | 0 | 1,873 | 1,873 | ||||||||||||
Provision for loan losses |
140 | 140 | 140 | 140 | ||||||||||||
Non-recurring G&A expenses (2) |
3,909 | 3,909 | 3,909 | 3,909 | ||||||||||||
Prepaid/straight-line rent receipts |
(15,144 | ) | (15,144 | ) | (23,463 | ) | (23,463 | ) | ||||||||
Funds available for distribution — normalized |
$ | 332,250 | $ | 340,000 | $ | 335,250 | $ | 337,500 | ||||||||
Per share data (diluted): |
||||||||||||||||
Net income attributable to common stockholders |
$ | 1.75 | $ | 1.82 | $ | 1.61 | $ | 1.63 | ||||||||
Funds available for distribution |
2.98 | 3.05 | 2.86 | 2.88 | ||||||||||||
Funds available for distribution — normalized |
2.91 | 2.98 | 2.92 | 2.94 | ||||||||||||
| Notes: | (1) Depreciation and amortization includes depreciation and amortization from discontinued operations. | |
| (2) Expenses recognized in connection with the departure of Raymond Braun. |
Page 9 of 9